Santander Conference Acapulco

Santander
Conference
Acapulco
JAN 08
Consolidated
Summary
FALABELLA SNAPSHOT
Chile based integrated retailer involved in the department store business,
home improvement, supermarket and financial services.
Key information and indicators (Dec-07)
• Operations in Chile, Perú, Argentina and Colombia
• 63 Department Sores, 84 Homecenters, 29 Super/Hypermarkets
• 1,208,824 m2 Selling space
• 4.7 million active credit card accounts CMR
• 53,000 employees Falabella
Financials
USD MM$ (1)
Revenues
EBITDA
Net Income
Market Cap.(2)
LTM Sep07
Falabella
5.528
726
429
11.642
(1) Real Ch$ @ Sep30, 2007, converted @ year-end exhange rate 496.89 Ch$/US$
(2) Stock Price 31/Dec/2007: Falabella Ch$ 2,420, D&S Ch$ 260.02
G Y|Y
17,0%
24,1%
10,6%
HISTORY OF FALABELLA
-Falabella initiates US$MM 2,500
investment plan 2008-2011
Salvatore Falabella opens
the first large tailor shop
in Chile
-Mall Plaza initiates Peru operations
1889
Alberto Solari joins
the Company.
1937
Incorporation of
home products.
Falabella becomes
a department
store.
1958
1980
Falabella initiates
development of
shopping centers
with the opening of
Mall Plaza Vespucio
Falabella creates
CMR, its own credit
card
D&S merger agreement
Falabella acquires
supermarket chain San
Francisco in Chile
2006
2004
Falabella enters the
Colombian market:
-Increases stake in Sodimac.
-Launches CMR credit card.
2005
Entrance to the
Hypermarket industry in
Peru with its first Tottus
2002
2003
Falabella merger
with Sodimac
Alliances with ENTEL and Copec
are created for the use of CMR
card.
1990
2001
2000
1993
First opening in
Argentina, city of
Mendoza.
2007 Announcement of Falabella –
-Sodimac announces entrance to
Argentina
Creation of Travel Agency
and Insurance brokerage.
1995
Joint venture agreement
with The Home Depot
1999 First department store in Buenos
1997
Falabella enters
Perú by acquiring
department store
Saga
100% of The Home
Depot Chile is
purchased
1996
Falabella IPO in the
Chilean stock
exchange
1998
Aires is opened .
20% of FASA drugstore is
purchased
Falabella Bank is
created.
CORPORATE STRUCTURE AS OF DECEMBER 2007
Real
RealEstate
Estate
Chile
Falabella
Stores
39
Sales Area 206,710 M2
Argentina
Falabella
Stores
7
Sales Area 42,295 M2
Perú
Saga Falabella
Stores
14
Sales Area 80.189 M2
Colombia
Falabella
Stores
3
Sales Area 29,268 M2
Chile
Sodimac + Imperial
Stores
55+7
Sales Area 489,414 M2
Chile
San Fco - Tottus
Stores
21
Sales Area 85,810 M2
Perú
Sodimac
Stores
7
Sales Area 54,073 M2
Perú
Tottus
Stores
8
Sales Area 61,619 M2
Colombia
Sodimac
Stores
15
Sales Area 159,446 M2
(49% ownership)
CMR Credit Card
N° of Active Accounts
Chile
2.7 mm
Argentina 565 m
Perú
> 1 mm
Colombia 308 m
Travel Agency
Branches +34
N°Pass. 200.000/year
Mall Plaza
Chile: 8 malls
Lease Ar. +590,093 M2
Perú: 1 mall
Lease Ar. 78,255 M2
Sociedad de Rentas
54 stores
Lease Ar. 359.000 M2
Insurance Brokerage
N°Accounts +4MM
Bank
ROE 2006
34,6%
Market Share
Cons.Credit 5,2%
N° Sav.Acc. 575.000
Other
Industrial
Mavesa 100% own.
Italmod 50% own.
FASA
20% own.
MAIN EVENTS 2007
Æ
ANNOUNCEMENT OF FALABELLA – D&S MERGER AGREEMENT
Æ OPENING OF 32 STORES DURING 2007. (16 IN 4Q07)
Æ
Æ
ACQUISITION OF CONTROLLING STAKE IN MALL PLAZA
MALL PLAZA BEGINS INTERNATIONAL EXPANSION THROUGH THE
CONSTRUCTION OF FIRST MALL IN PERU
Æ
ACQUISITION OF 60% OF INVERSIONES IMPERIAL (7 STORES)
Æ
BANCO FALABELLA INAUGURATED IN PERU
Æ
CAPITAL INCREASE FOR STOCK OPTIONS
Æ
NYSE LISTING PROCESS
OTHER RECENT EVENTS
Æ MMUS$ 1.600 INVESMENT PLAN FOR 2008-2011 (+ MMUS$ 900 IN MALL PLAZA)
CONSOLIDATED INCOME STATEMENT
9M 2007 (MMUS$)
9M 2007
Revenues
COGS (less)
GROSS MARGIN
SG&A (less)
OPERATING INCOME
Depreciation + Amortization (less)
EBITDA
4.000
(2.821)
1.179
(760)
419
(90)
509
NON - OPERATING INCOME
% Revenues
9M 2006
% Revenues
Var. 07/06
-70,5%
29,5%
-19,0%
10,5%
-2,2%
12,7%
3.415
(2.439)
976
(651)
325
(73)
398
-71,4%
28,6%
-19,1%
9,5%
-2,1%
11,7%
17,1%
15,7%
20,8%
16,8%
29,0%
22,6%
27,8%
(66)
-1,6%
(19)
-0,6%
246,4%
PROFIT BEFORE TAX & EXT. ITEMS
INCOME TAX
MINORITY INTEREST
PROFIT (LOSS) bef amort of NG
NET PROFIT (LOSS)
353
(63)
(22)
268
268
8,8%
9,0%
6,7%
306
(45)
(4)
257
257
7,5%
15,6%
39,3%
481,8%
4,4%
4,4%
Adjusted EBITDA
552
13,8%
463
13,6%
19,3%
REVENUES (MMUS$)
4.684
Var07/06= 17%
4.145
CAGR = 23%
4.000
3.495
3.415
2.370
1.912
2002
2003
2004
(*) Real Ch$ @ Sep 30, 2007, converted @ exchange rate 511.23 Ch$/US$
2005
2006
9M06
9M07
NET INCOME MMUS$ & % REVENUES
9,3%
7,8%
8,2%
8,2%
8,7%
7,5%
6,7%
405
338
273
219
257
157
2002
2003
2004
(*) Real Ch$ @ Sep 30, 2007, converted @ exchange rate 511.23 Ch$/US$
2005
2006
9M06
268
9M07
OPERATING INCOME 9M 2007
9M 07
Chile; 83,1%
Peru; 15,9%
Total 9M 07= MMUS$419
Argentina;
1,0%
CONSOLIDATED INDICATORS
Ebitda (MMUS$)* & % Revenues
14,7%
13,6%
12,1%
12,8%
11,6%
531
11,7%
545
423
281
2002
509
398
323
2003
12,7%
2004
2005
2006
9M06
9M07
13,9%
13,4%
Liabilities /Equity
ROE: Net Inc./Equity (%)
14,7%
14,1%
15,8%
13,0%
1,31
1,05
11,3%
1,06
0,91
2002
2003
2004
2005
2006
9M06
9M07
2002
2003
2004
0,98
1,01
2005
2006
9M07
FALABELLA STOCK EVOLUTION
Market Cap.
US$MM 11,642
Stock Price (Ch$)
US$MM 6,574
US$MM 4,214
US$MM 8,393
2,420
1,870
US$MM 5,783
1,350
1,410
Dec-04
Dec-05
1,048
Dec-03
Dec-06
Dec-07
CAGR: 23.3%
*Converted at each period’s year-end exchange rate
BUSINESS UNITS
FALABELLA Department Stores · Revenues (MMUS$)
1,412
Var: 6.9%
1,321
Chile
390
321
Perú
237
196
Argentina
Colombia
Var: 21.4%
Var: 20.5%
47
0
LTM Sep06
LTM Sep07
FALABELLA · Department Stores*
Chile
•
•
•
•
New stores 2007: 4
Total stores: 39 (206,710 M2)
Openings 2008: 3
Openings 2008-2011: 14
(*) Projected information subject to changes
International
•
•
•
•
New stores 2007: 6
Total stores: 24 (151,752 M2)
•
14 Peru, 7 Argentina, 3 Colombia
Openings 2008: 5
Openings 2008-2011: 23
SODIMAC Home Improvement · Revenues (MMUS$)
1,776
Chile
1,527
478
Colombia
Perú
334
Var: 43.3%
102
64
Var: 58.7%
LTM Sep06
LTM Sep07
Var: 16.3%
SODIMAC · Home Improvement*
Chile
•
•
•
•
•
New stores 2007: 4
Addition of 7 Imperial Stores
Total stores: 62 (489,414 M2)
Openings 2008: 4
Openings 2008-2011: 31
(*) Projected information subject to changes
International
•
•
•
•
New stores 2007: 9
Total stores: 22(213,519 M2)
•
7 Peru, 15 Colombia
Openings 2008: 16
Openings 2008-2011: 55
TOTTUS – SN FCO Supermarkets · Revenues (MMUS$)
462
Chile
341
187
Perú
157
LTM Sep06
Var: 19.0%
LTM Sep07
Var: 35.4%
TOTTUS – SAN FRANCISCO · Supermarkets*
Chile
•
•
New stores 2007: 5
Total stores: 21 (85,810 M2)
(*) Projected information subject to changes
Peru
•
•
•
•
New stores 2007: 4
Total stores : 8 (61,619 M2)
Openings 2008: 9
Openings 2008-2011: 31
OTHER RETAIL OPERATING INDICATORS
Same Store Sales (Real %)
Department Stores - Chile
Home Improvement - Chile
Supermarkets - Chile
Department Stores - Perú
Hypermarkets - Peru
Home Improvement - Peru
Department Stores - Argentina
Sales Area Growth (%)
Department Stores - Chile
Home Improvement - Chile
Hypermarkets - Chile
Department Stores - Perú
Hypermarkets - Perú
Home Improvement - Peru
Department Stores - Argentina
Department Stores - Colombia
Home Improvement - Colombia
9M 2007
3,1%
6,4%
-0,1%
10,4%
1,1%
10,0%
9,8%
Sep-07
Sep-06
Sales Area
(m2)
202.500
484.033
80.853
67.781
30.335
38.757
39.817
18.865
143.207
Sales Area
(m2)
183.622
409.421
53.369
59.890
30.335
26.971
39.817
106.535
Growth %
10,3%
18,2%
51,5%
13,2%
0%
43,7%
0%
34,4%
Financial Retail · Indicators
Total Gross Loans Composition (Sep07)
Total Gross Loans (MMUS$)
2,742
2,454
Banco
Falabella Chile
36%
2,046
CMR Chile
47%
1,542
1,177
877
2002
2003
2004
2005
2006
CMR Perú
CMR Colombia
12%
3%
CMR Argentina
2%
9M 07
Total Active Accounts per Country
(MM)
0.3
0.2
0.4
0.4
0.3
0.6
1.8
2002
0.3
0.7
0.8
2.0
2.3
2003
Chile
2004
Peru
0.5
0.6
0.9
1.0
1.1
2.6
2.6
2.7
2006
9M 07
2005
Argentina
Colombia
Financial Retail · Efficiency
60%
50%
Operating Ratio as of September 2007
(Expenses/Gross Margin)
49,0%
40%
30,7%
34,3%
30%
19,3%
20%
10%
0%
Financial System
Falabella Bank
Falabella Bank
Chile
Peru
Chile
Provision as of
September 2007 (%)
CMR Chile
6,4%
4,6%
Financial
System Chile
4,2%
Falabella
Bank Perú
Falabella
Bank Chile
4,5%
CMR Chile
MALL PLAZA*
Chile
•
•
•
•
Existing Malls 2007: 8
Total Leasing Space: 560,093 M2
Openings 2008: 2
Projects 2008-2011: 7
(*) Projected information subject to changes
•
•
•
•
Peru
New Malls 2007
•
Mall Plaza Trujillo
Total Leasing Space: 78,255 M2
Openings 2008: 1
Projects 2008-2011: 5
Growth
Growth Plan
Plan
INVESTMENT PLAN (US$ MM)*
804
Malls
Stores
845
304
361
484
601
183
107
377
325
442
82
541
418
243
2007
2008
NEXT 4 YEARS:
2009
2010
2011
OVER US$MM 1,600 IN STORES
PLUS US$MM 900 IN MALLS
(*) Information subject to changes.
Includes Sodimac Colombia
Also, during 2007, US$MM 140 was invested in the acquisition of additional shares of Mall Plaza and a 60% equity stake in Imperial.
INVESTMENT IN STORES (US$ MM)*
541
442
418
377
243
2007
2008
2009
2010
OVER US$MM 1,600 IN NEXT 4 YEARS
(*) Information subject to changes.
Includes Sodimac Colombia
2011
STORE OPENINGS *
Total N°Stores
1761
212
256
44
36
141
294
38
29
28
2007
2008
323
2009
2010
2011
147 NET STORE OPENINGS IN NEXT 4 YEARS
(1) Includes 7 Imperial Stores acquired in May 2007.
(*) Information subject to changes.
Includes Sodimac Colombia
323
SELLING SPACE*
360
1,006,000 [M2]
284
261
210
203
2007
2008
2009
2010
SELLING SPACE X 2 IN NEXT 4 YEARS
(*) Information subject to changes.
Includes Sodimac Colombia
2,324,000 [M2]
2011
STORE SUMMARY · 2007 – 2011**
N° of Stores 2007
TOTAL
N° of Stores 2011*
TOTAL
Falabella
63
Falabella
100
Sodimac
84
Sodimac
178
Tottus
29
Tottus***
45
TOTAL
176
(*) N° of stores 2011 = N° of stores 2007 + Openings – Closing of stores
(**) Information subject to changes.
Includes Sodimac Colombia.
(***) Does not include investment plan to be developed with D&S.
TOTAL
323
LEADING REGIONAL EXPANSION
COLOMBIA
Falabella
Sodimac
Financial Retail
PERU
Falabella
Sodimac
Tottus
Financial Retail
Inmobiliario
CHILE
Falabella
Sodimac
Tottus
Financial Retail
Real State
ARGENTINA
Falabella
Financial Retail
Sodimac
CONTACT INFORMATION
Juan Guillermo Espinosa ([email protected])
Tomás Gazmuri ([email protected])
Phone: 56-2-380 2007
Fax: 56-2-380 2008
DISCLAIMER
This presentation contains forward-looking statements, including
statements regarding the intent, belief or current expectations of the
Company and its management. Investors are cautioned that any
such forward-looking statements are not guarantee of future
performance and involve a number of risks and uncertainties
including, but not limited to, the risks detailed in the company’s
financial statements, and the fact that actual results could differ
materially from those indicated by such forward-looking statements.